A wealth tax would additional have an effect on the already beleaguered Prime London market, Camilla Dell, managing companion at property consultancy service Black Brick, has warned.
Downing Road has left the door open to increased taxes on the rich, in a bid to shut the £20-£30 billion price range deficit within the upcoming Autumn Price range.
Lord Kinnock has lately publicly proposed a 2% annual tax on belongings above £10 million which is recommended might increase £11bn.
Nonetheless Dell stated: “Wealth taxes have had combined success internationally. Sensible challenges have led many international locations to desert or reform them.
“France, Germany, and Sweden all abolished their wealth taxes and solely Norway nonetheless has one in place and Spain (quickly).
“Nonetheless doubtless or unlikely a wealth tax could also be within the UK, not closing the rumours down results in pointless uncertainty in prime actual property markets like London.
“With the London property market already fragile, that is the newest in a collection of blows which will trigger some patrons to pause their choice on whether or not to purchase now or wait till the Autum assertion.
“Uncertainty round tax is the very final thing the market wants proper now. We will solely hope that the federal government sees sense and takes a better have a look at how cell wealth is, and the way damaging abolishing UK Res Non-Dom regime has been for the UK with 16,500 rich people having left to this point.
“A wealth tax is more likely to trigger much more rich to go away the UK and is more likely to increase a small fraction of what’s forecast.”
